From $4,000 to $13,800, analysts say the behind-the-scenes push for bitcoin is Tether.

A cryptocurrency Twitter analyst believes that Tether's USDT is a true catalyst for bitcoin prices rising from $4,000 to $13,800.

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Bitcoin is not a "robust currency"

Earlier this week, Twitter celebrity Andrew Rennhack said bitcoin soared from $4,000 to $13,800, mainly driven by Tether printing a lot of USDT. Rennhack said Bitcoin is not a "robust currency" because "the entire cryptocurrency market has unaudited Tether support, and Tether has the highest 24-hour trading volume."

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Interestingly, Rennhack claimed that Tether's USDT issuance rate "will even make the Fed blush." Rennhack believes that Bitcoin's huge bull market has no reasonable explanation, and he disagrees with what he often calls "institutional investors rush to buy bitcoin to hedge stock market volatility" and cause bitcoin to rise.

a long-term conspiracy

Rennhack is not the first to propose that Tether's market value directly affects the price of Bitcoin. Since the currency market soared in 2017, many market analysts and scholars have reached similar conclusions.

Since the beginning of June, more than $750 million in USDT has been issued, which is closely related to the rapid growth of Bitcoin to $13,800.

Ethfinex founder Will Haben explained:

When you see the massive release of Tether, this means that a few wealthy customers have basically booked a batch of Tether a few days in advance and then sell it before the market starts to soar. The purchase of a large number of USDTs also enables whales to trade on crypto-exchanges that are not legally traded and are highly liquid.

Rich investors are required to order Tether worth at least $100,000 to purchase directly from Tether's website.

The cryptocurrency community understands these transactions through a cryptocurrency tracking robot called WhaleBot. The robot reported a large number of Tether transfers and transactions, and investors tracked these movements and speculated that the encryption market would react in a bearish or bullish manner.

In June of this year, Tether issued a total of 600 million USD USD. As these USDTs entered the market, the price of bitcoin rose from $8,500 to $11,000. Harborne believes that this single example demonstrates Tether's printing behavior leading to speculative and bullish bitcoin price behavior, and he pointed to research that supports this conclusion.

Not everyone thinks so

Some Twitter fans publicly opposed Rennhack's hypothesis, Nick Core said:

Regardless of Tether and its release, I have no objection. If you don't compare Tether inflows with the US dollar, you can't realistically say that this is why Bitcoin has risen. The market value of USDT has risen from $1.8 billion to $4 billion, and it is not logical to explain why the BTC market value has risen from $56 billion to $19 billion.

JP Morgan's 2017 report studies seem to support Rennhack's estimates. The report found that the total market value of the encryption market has a multiplier effect of 50 times.

In 2017, JP Morgan Chase estimated that nearly $6 billion in legal tender was invested in cryptocurrency, bringing the total market value of cryptocurrencies to $300 billion.

According to Rennhack, the $2 billion USDT has been printed in 2019, and Bitcoin currently accounts for 67% of the entire encryption market. “2 * 50 * 0.67 = $67 billion in false market capitalization has joined the BTC YTP, which is very close to the actual figures.”

The market value of Bitcoin follows Tether

Another interesting chart comparing the market value of Tether and the market value of Bitcoin is circulating on the Internet.

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A closer look at the chart reveals that Bitcoin's market capitalization is lagging behind Tether's trend.

So far, Bitcoin has not caught up with Bitcoin's gains, and some analysts believe that this will support Bitcoin's bull market in the short term.

The plot is getting more complicated

Many people think that Tether's unique approach to injecting USDT into the cryptocurrency market is nothing more than market manipulation. The Office of the Attorney General of New York clearly belongs to this camp, and Tether has recently been involved in a lawsuit alleging that Tether and Bitfinex are operating illegally in New York State.

Encrypted blogger Bitfinex'ed, who has been closely watching Tether activities for many years, believes that:

Bitfinex issues Tether to traders, allowing them to manipulate the market, market operators to pull up shipments, and then pay for Tether.

Late last week, the New York Supreme Court judge in charge of the case postponed the ruling on the case, so it will take some time for the community to have a deeper understanding of the case.